“Well known, but still shocking” finds final Productivity Commission report


Thursday 13 November 2025

  • The Productivity Commission has released its final report into the national Mental Health and Suicide Prevention Agreement.
  • The report has found that the agreement is not fit for purpose and should be re-written.
  • The report has 24 recommendations, and states that psychosocial supports should be prioritised immediately.

The Productivity Commission yesterday released its final report into its review of the Mental Health and Suicide Prevention Agreement – the plan that sets out how state and federal governments will work together to improve Australians’ mental health and prevent deaths by suicide.

An interim report released in June found the plan was “fundamentally flawed” and the latest report builds on that feedback, stating that the plan is not fit for purpose and the consequences of this are “well known but still shocking."

This includes about 3,000 deaths by suicide each year, one in five Australians experiencing mental ill-health, and more than $200 billion a year in costs to the economy.

The current agreement is set to expire in June 2026, with the Productivity Commission recommending that it be extended by 12 months to allow people with lived and living experience of mental ill-health and suicide, to be meaningfully included in the design, planning, delivery and evaluation of the services under the new agreement.

The review also recommended that while the next agreement is being negotiated, state and territory governments should immediately prioritise addressing the gap in psychosocial supports outside the NDIS, as well as including ongoing funding arrangements for these services in the next agreement.

This means prioritising and funding adequate support for the 500,000 Australians who have ongoing, moderate to severe mental health challenges, but are not eligible for the NDIS.

WAAMH’s CEO, Taryn Harvey, said that while the report was concerning, it did not come as a surprise.

“While our members have had a chance to deliver some new services over the last three years, such as Medicare Mental Health Centres and Head to Health Kids hubs, it’s clear that there have not been significant improvements since the national agreement was signed,” she said.

“We’ve been advocating for more community-based psychosocial supports for some time, because we know they are affordable, effective, and could help the 500,000 Australians who are falling through the cracks, right now.

“We will await the outcome of the next joint health and mental health ministers’ meeting and hope to see a strong response to the recommendations of this report.”

Federal Health Minister, Mark Butler, responded to the final report yesterday, calling it "an opportunity to reset.”

“We must amplify the voices of people with lived experience and ensure future arrangements present a clear, long-term vision for improving mental health outcomes and reducing suicide," Minister Butler said.

While all state and territory ministers have agreed to consult with lived experience and sector representatives in their jurisdictions before the next joint health and mental health ministers’ meeting, this has so far not occurred.

The Productivity Commission’s full inquiry report, as well as an overview and summary of the public feedback received, can be viewed online.